Nuveen Real Estate (Homepage)

Nuveen Real Estate is one of the largest investment managers in the world with $130bn of assets under management.

Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.

With over 80 years of real estate investing experience and more than 600 employees* located across over 25 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geo- graphic reach, which is married with deep sector expertise.

Sector forecasts

Office: Looking ahead, we expect a quicker pace of rental growth in French cities and in the German centres of Frankfurt and Cologne. Dublin might resume growth once the current supply pipeline has been absorbed and in Lisbon, new development schemes have the potential to push up rents beyond previous cycle peaks. The faltering global economy is the fly in the ointment. Can Europe’s domestic resilience continue in the face of ongoing problems in the traded sector? While service sector job growth remained positive in all countries in 2018, it mainly decelerated (with the exceptions of the Nordic region, Netherlands and Spain).

Retail: Nuveen Real Estate has developed a risk index of retail disruption across the world’s leading retail markets to assess where the greatest risks lie in the future from this trend. It is designed to show which retail real estate markets will suffer the greatest disruption due to the emergence of e-commerce, rather than where online sales will be highest and therefore includes factors that affect the overall resilience of the retail system, such as retailer debt levels and inward migration. The index confirms that the United Kingdom is the EU’s most vulnerable market to online migration, but also highlights Denmark, the Netherlands and Poland as markets with medium to high risk. Several markets display much lower risk due to factors such as cultural resistance to e-commerce, low adoption of digital payment systems or a high presence of food retail and restaurant culture. Particularly noteworthy are Portugal, France and Italy where our risk index suggests that retail investments are most insulated against the impact of online sales over the medium term.

Residential: Given the broad acceptance of the late market cycle, it is no surprise that structural driven sectors are favoured by investors at present. Exposure to the European housing sector, including student accommodation, hotels and healthcare, is sought by investors who are keen to access the previously resilient and perceived future robustness of performance. Pan-European residential opportunities are limited, given the nascent market dynamics outside of the established German and Dutch markets, while an expanse of student accommodation can offer compelling returns versus the more established sectors.

Industrial: Logistics assets are increasingly priced for growth, despite rental increases remaining weak across most markets. Recent evidence suggests that landlords are increasingly able to push up rental values. Average headline growth is still only about 2% pa, but net effective rents are doing better as incentives are eroded and tenants accept higher rents on slightly compromised second-hand stock. While we expect structural drivers to continue to put upward pressure on rents, the global economic slowdown still has the potential to slow the market down.

Investment principles & strategy

A client-focused culture is at the core of who we are and what we believe our clients expect from us.

We take a stable, risk-aware investment approach to our business, which places our clients and investment teams at the heart of our process. Our fund management teams work closely with our clients to deliver investment performance that meets their objectives. The teams operate within a defined investment process with established risk controls, accompanied by investment committee oversight.

Our tomorrow’s world investment philosophy incorporates strategic insights on megatrends throughout every stage of the investment process, looking beyond market cycles to assess how structural trends can best inform long-term real estate investments. Environmental and social governance is embedded into everything we do for the enduring benefit of clients and society.

Strategic corporate development

We work closely with our clients to develop long-term strategic relationships, to understand their goals and meet their requirements. To ensure we provide each investor with a tailored solution, made up of a range of products and strategies, we have developed our range of solutions to offer the resilient, enhanced and debt series:

Our resilient series is designed for investors who are focused on diversification, income and long-term capital growth. Our strategies focus on investing in high-quality assets in leading cities that are well positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.

Our enhanced series applies strategies that work within market cycles, use a more active asset management and repositioning approach, and/or invest in emerging sectors and locations. These strategies are designed for investors that are looking for an enhanced level of capital growth.

Our debt series is designed to provide investors with access to secure, income-focused returns. Our strategies may suit cautious investors seeking attractive levels of income with a measure of downside protection against short-term capital cycles.

Performance verification

Nuveen Real Estate has its own performance analysis team dedicated to measuring and analysing property portfolio and fund performance.

COMPLIANCE STATEMENT

All information is as at 30 June 2019 and sourced to Nuveen Real Estate. This profile is intended solely for the use of professionals and is not for general public distribution. The information contained herein was up to date at the time of producing and is subject to change. This information is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements] Nuveen Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. Nuveen Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”). Issued by Nuveen Real Estate Management Limited (reg. no. 2137726), (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN) which is authorised and regulated by the Financial Conduct Authority to provide investment products and services.

Diversification and resilience are key investment attributes for navigating volatile markets and an uncertain economic outlook. Alternative asset classes are a rich source of both. Experts from Nuveen and its affiliates share their views on potential opportunities for institutional investors.

Nuveen Real Estate’s market-leading global research team is working daily to understand and assess the impact of the coronavirus on real estate markets and provide regular global, regional and sector perspectives.

The viability of a cities-based real estate strategy appears questionable in these challenging times. Our day-to-day activities in cities around the world have been altered in ways few of us would have imagined just a few months ago. The spread of the coronavirus, the disruption to our daily lives, and the toll on health and human life are alarming.

As coronavirus fears roil the equity and fixed income markets, real estate investors may be wondering how to monitor and assess the asset class. Nuveen Real Estate’s experts offer their collective insights on the global, regional and country level along with sector views. Our chief investment officers also discuss the implications for real estate portfolios and what may lie ahead for real estate markets.

Alice Breheny, global head of research at Nuveen Real Estate, and senior members of her research team, along with our regional CIOs, discuss a range of issues and answered client questions on coronavirus and the impact on real estate.